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Council keeps stormwater utility as a fee‑funded enterprise for now; staff to simplify fee calculation and improve HOA outreach

Beaufort County Council · March 10, 2026
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Summary

Staff walked council through the stormwater utility fee formula and revenues (~$7.4M average). Moving the program into the general fund would require an estimated operating‑mill increase (~2.5 mils) to preserve revenue; council indicated no appetite for converting the enterprise to millage and asked staff to simplify the fee calculation and improve HOA outreach for credit programs.

Beaufort County staff presented a technical briefing on the county's stormwater utility and the implications of converting that fee‑based enterprise into the general fund/operating millage.

Jared Fralix (stormwater staff) explained the current fee calculation: an equivalent single‑family dwelling unit is treated as roughly 4,906 square feet, impervious area and gross lot area are accounted for, and different tiers apply for residential and commercial properties. He walked council through examples showing how typical single‑family and larger commercial parcels are translated into equivalent units and how the county and municipalities set their rates. Staff reported average stormwater utility revenue of roughly $7.4 million across the last three fiscal years and said that to replace that dedicated fee revenue within the general fund would require roughly a 2.5‑mill increase to the operating millage given current estimates.

Council members emphasized the equity and targeting rationale for the enterprise fee structure (impervious‑area basis) and the administrative benefits of keeping stormwater as a utility that charges users proportionally. Staff and multiple council members said the utility is healthy with a sizable fund balance (staff estimated roughly $12 million in fund balance but noted project spending planned for capital projects). There was particular interest in simplifying the fee calculation (currently complicated and data‑intensive) and in outreach materials and assistance for HOAs that can apply for credits for stormwater best‑management practices; staff agreed to publish clearer guidance and a list of prior HOA credit recipients.

What happens next: staff will continue to simplify the fee calculation formula, provide clearer outreach and credit‑application guidance for HOAs, and present refinements to council; no change to enterprise status was approved at the workshop.